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Mirc Electronics, which owns the Onida and Igo brands, has decided to focus on strengthening its existing portfolio and entering newer geographies rather than launch newer ones as it plans to grow its revenues to about Rs 4,500 crore by 2013.
Mr K. Sriram, Vice-President, Corporate Strategy, Mirc Electronics, said the plan is to focus on its existing product portfolio comprising flat panel TVs, air-conditioners and mobile phones in the next two years, rather than launch new brands or new product categories.
“Geographically, there are a lot of white spaces for both our brands (Onida and Igo). Also, the penetration levels of the product categories being very low, we are competing not with our rivals but against non-consumption and so would like to plug these gaps in the coming years,” Mr Sriram said.
Market share
Although for each product category, the choice of region for growth would vary, the focus would be on North and East India as the brand's existing base is stronger in the West and South. Currently, Mirc's market-share numbers are 11 per cent in ACs, 7 per cent in LCD TVs and 1.2 per cent in mobile phones. The company plans to increase these numbers to 15 per cent, 12 per cent and 2 per cent respectively.
Mirc's focus to increase its market share in mobile phones to 2 per cent by the end of this fiscal will be driven by several initiatives such as product development innovation, focussed advertising and promotion spends and scaling up service infrastructure. Igo, targeted at the rural markets, will focus on TVs and rurally relevant categories such as semi-automatic washing machines and LED lanterns.
Ad spend
The company has increased its investments in advertising and promotion from Rs 55 crore to Rs 120 crore. Mr Sriram said the company had already invested Rs 60 crore in its back-end infrastructure at the Roorkee factory and new lines at the Wada factory.
Having gone through a management restructuring exercise just a few weeks ago, the company, which grew 28 per cent in the last fiscal with a turnover of Rs 2,300 crore, is looking at revenues of about Rs 4,500 crore by 2013.
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